20120625-NEWS--18-NAT-CCI-CL_--
18
6/21/2012
3:28 PM
Page 1
MAKING IT
CRAIN’S CLEVELAND BUSINESS
JUNE 25 - JULY 8, 2012
Top: Pay at startups lower initially, but jobs offer return continued from PAGE 15
oncology, research, surgery, critical care, and labor and delivery, said Christine Durigg, director of staffing and recruitment. Engineer employment is healthy at firms such as Cleveland-based MCPc, a technology solutions provider that last year hired 27 engineers to bring to 78 its current engineer headcount and to 367 its overall employment. The majority of these occupations are virtualization-focused, as cloud computing becomes more ubiquitous. “When it comes to this type of talent, companies are challenged with compensating appropriately,” said Beth Stec, MCPc’s vice president of corporate communications and human resources. “We are finding we are compensating IT folks and engineers at a higher rate of growth than other types of positions, so if the market is trending toward a two-, three- or four-percent pay increase, the engineering team gets over double that.” The engineering talent pool is a highly selective group. According to a March 2012 U.S. News and World Report story, the unemployment rate is about 2% for engineers. Observers see demand for positions that include biomedical, aerospace and automotive — sectors that have or are developing substantial roots in Northeast Ohio. Wickliffe-based Lubrizol is thinking even bigger because the specialty chemicals company now is owned by Warren Buffett’s Berkshire Hathaway Inc. Its recent acquisition strategy outlines a plan to reach $10 billion in sales, and it places an emphasis on acquisitions for Lubrizol’s advanced-materials unit.
Tom Tomasula, director of global talent acquisition at Lubrizol, said he expects the company will need to hire more chemists and chemical and mechanical engineers. Of course, there’s also recruiting for specialized jobs that, at the getgo, don’t offer much compensation. When Robert Hatta, vice president for entrepreneurial talent at JumpStart Inc., seeks candidates to fill positions at early stage companies and startups, he seeks a highly targeted, exclusive group. “It’s not for everyone, but you offer something special: a chance to play a critical, high-impact role in delivering an innovative new product to market and (potentially) creating significant wealth in the process,” Mr. Hatta said. “The tradeoff between shorter-term lower compensation is the longerterm potential in stock options.” The right individuals not only need specific technical skills, but must have the right personality. “It’s hard to find people who do, and have demonstrated the desire to take risks in job security and compensation,” Mr. Hatta said. The venture development organization recruits nationally, although Mr. Hatta and others work closely with talent attraction group Global Cleveland, the Northeast Ohio Software Association and local colleges and universities to source regional talent. A shortage in qualified employees is a concern among technology industry professionals, and Northeast Ohio is not unique. “It’s worse in Seattle, San Jose … the tech meccas,” Mr. Hatta said. “The shortage here could easily be addressed with an open-minded, aggressive approach toward
HIGH- AND LOW-PAYING NON-EXECUTIVE OCCUPATIONS IN NE OHIO The average median base salary figure for each occupation was calculated using data excerpts from the following surveys conducted by ERC: 2012 ERC Salary Survey; 2012 ERC Wage Survey; and 2011 ERC Non-Profit Compensation Survey. The salary figure reported for each occupation is an average of median salaries across applicable job titles from entry level through management level. Executive and director position types were excluded to prevent skewed averages. ERC’s annual salary and wage surveys report data on hundreds of positions for thousands of employees. Go to www.ercnet.org for more information.
Higher-paying occupations
Median salary, 2011-12
Specialized engineering
$74,152
Programmers/software engineers
70,349
Safety (i.e. risk manager)
69,656
Nursing
68,578
IT analysts
67,044
Lower-paying occupations
Median salary, 2011-12
Warehouse/distribution laborers
$30,577
Misc. production (i.e. painting, coating)
32,483
Administrative support
33,515
Patient/client services
33,910
Assemblers/fabricators
35,712
recruiting, where companies train employees or graduates.”
At the bottom Food preparation and related service positions are on the other end of the spectrum, with annual mean wages not much higher than a full-time minimum wage income. According to the Bureau of Labor Statistics’ May 2011 look at the Cleveland-Elyria-Mentor area, dishwashers and lifeguards earn just
under $18,000 a year. Fast-food cooks, restaurant hosts and hostesses and cooks are paid in the $18,000 to $19,000 range. Home health and personal care aides earn annual salaries in the low $20,000s. Other lower-paying occupations include: ■ Child care workers, $22,660 ■ Funeral attendants, $23,280 ■ Veterinary assistants, $23,410 ■ Preschool teachers, except special education, $23,650
Exposure
According to ERC’s membership survey, jobs that fall into the lowestpaying categories are found in warehouse, production, administration and client/patient services. Many of these jobs have low education and skill requirements with highly repetitive duties, according to ERC, although exceptions are in the social and human services areas. Education and social work pay about $10,000 more than manual laborers and production workers, whose average median base salaries are in the low $30,000s. Of course, even lower income levels strain an estimated 39,000 families, or 12.2% of Cuyahoga County’s population, who have annual income levels below $15,000, according to the U.S. Census Bureau’s 2010 American Community Survey. Many of these workers no doubt rely on minimum-wage jobs in sectors such as food service or retail. These positions typically rely on weekly schedules, so workers often aren’t guaranteed 40-hour work weeks. A working adult supporting a family and earning $7.70 an hour means he or she likely needs to choose between basic needs such as food, child care, health care, quality housing or reliable transportation, said Emily Campbell, Williamson Family Fellow for Applied Research at the Cleveland-based Center for Community Solutions, a research and advocacy group on health, social and economic conditions. “However, a parent earning minimum wage makes so little that their family would probably qualify for public assistance like food stamps, Medicaid or housing assistance,” she aid. “But it’s very difficult to live on minimum wage, earning $16,000 a year.” ■
Expertise
Results
Marcus & Millichap Cleveland is closing more investment sales transactions than any other firm in the Midwest. Below is a Sampling of Our Recent Listings.
Commercial & Industrial Christopher Felice Shareholder
W
e understand the unique accounting, tax and business issues that you face.
Cleveland, OH Multifamily 64 Units $1,450,000 Agent: Ben Baker
Canton, OH Wendy’s (2) $1,417,000 / $1,403,000 Agents: Erin Patton, Scott Wiles, Craig Fuller
University Heights, OH Jackson, Montor & Wrenford 76 Units $3,125,000 Agents: Michael Barron, Daniel Burkons
Canton, OH Shopping Center 174,353 SF $2,615,000 Agents: Scott Wiles, Erin Patton, Craig Fuller
Our ability to offer strategies that create value let you remain competitive in today’s complex commercial and industrial arena. Let our knowledge, experience and expertise be an asset to your company’s operations, management and shareholders.
To Access the Investment Market, Contact the Market Leader.
■ Cleveland 216.363.0100 ■ Canton 330.966.9400 ■ Elyria 440.323.3200 + Business Advisors and Certified Public Accountants
maloneynovotny.com
Offices Nationwide
Michael L. Glass Vice President/Regional Manager Cleveland Office (216) 264-2050 mglass@marcusmillichap.com
www.MarcusMillichap.com